Fundamentals of Business
Business & Financial Markets
- Competition
- Michael Eugene Porter
- Buyer power
- Barriers to entry/exit (deliberate and innocent)
- Classification and examples of barriers
- The main reasons that price wars occur are
- Value chain
- Empirical research on the profit impact
- Strategies for Micro & Small Enterprises
- To maintain differentiation strategy
- Market structures
- The characteristics of a monopolistically competitive market
- The correct sequence of the mar market structure ket from most
- Collusion
Fundamentals of Business
An enterprise and its competitors
Enterprises offering substitutes in the same market segment as your enterprise
Understanding competition
Competition direct or indirect, only occurs within a market segment
Definitions
An industry - segmentation of production firms on the basis of their primary generic
product/service.
Product/service – any tangible or intangible item.
A market - place where buyers and sellers meet and exchange goods/services.
Market segment - a section within a demographic profile.
Example of impact of competition
Extract from Reuters
Starbucks to cut up to 12,000 jobs, close 600 stores
By Lisa Baertlein, 1 July,2008
LOS ANGELES (Reuters) - Starbuc Starbucks Corp ks said on Tuesday it plans to close 600 underperforming U.S.
stores and cut up to 12,000 full and part time positions, as it copes with an economic downturn and
increasing competition competition.
The coffee seller, bracing for its first full year profit decline since 2000, has been grappling with the slowing U.S.
economy and consumer spending at the same time that major competitors like McDonald's Corp have begun
attacking its core business.
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